Manufacturing PMI Stands at 56.2% in September 2018 from 57.1% in August 2018

The
September 2018 PMI survey was conducted by the Statistics Department of the
Central Bank of Nigeria during the period September 10-17, 2018. The
respondents were purchasing and supply executives of manufacturing and
non-manufacturing organizations in all 36 states in Nigeria and the Federal
Capital Territory (FCT) (Fig. 1).

The
Bank makes no representation regarding the individual companies, other than the
information they have provided. The data contained herein further provides
input for policy decisions

Data and Method of Presentation

The
Manufacturing and Non-Manufacturing PMI Report on businesses is based on survey
responses, indicating the changes in the level of business activities in the
current month compared with the preceding month. For each of the indicators
measured, this report shows the diffusion index of the responses.

The
diffusion index is computed as the percentage of responses with positive change
plus half of the percentage of those reporting no change, except for supplier
delivery time, which is computed as the percentage of responses with negative
change plus half of the percentage of those reporting no change. The composite
PMI for the manufacturing sector is computed as the weighted average of five
diffusion indices, namely: production level, level of new orders, suppliers’
delivery time, employment level and raw materials inventory/work in progress,
with assigned weights of 25%, 30%, 15%, 10% and 20%, respectively.

The
composite PMI for the non-manufacturing sector is computed from four diffusion
indices, namely: business activity, level of new orders, employment level and
raw materials inventory, with equal weights of 25% each.

A
composite PMI above 50 points indicates that the
manufacturing/non-manufacturing economy is generally expanding, 50 points
indicates no change and below 50 points indicates that it is generally
contracting. The subsectors reporting growth are listed in the order of highest
to lowest growth, while those reporting contraction are listed in the order of
the highest to the lowest contraction.

Manufacturing PMI Report

The
Manufacturing PMI in the month of September stood at 56.2 index points,
indicating expansion in the manufacturing sector for the eighteenth consecutive
month. (Fig. 3 and Table 1).

At
58.4 points, the production level index for the manufacturing sector grew for
the nineteenth consecutive month in September 2018. The index indicated a
slower growth in the current month, when compared to its level in the preceding
month. Ten of the 14 manufacturing subsectors recorded increase in production
level, 1 remained unchanged while 3 declined (Fig. 4 and Table 2).

New Orders

At
55.3 points, the new orders index grew for the eighteenth consecutive month,
indicating increase in new orders in September 2018. Nine subsectors reported
growth, 2 remained unchanged, while 3 contracted in the review month (Fig. 5
and Table 3).